Central American Small Enterprise Investment Fund IV

In December 2020, Lafise Investment Managers (LIM) launched its fourth fund, CASEIF IV, a growth capital fund for growing small and medium-sized enterprises (SMEs) in Central America, the Dominican Republic, and Colombia. The Fund targets USD 75 million and is expected to play a role in boosting the economic recovery in the target region by providing flexible mezzanine funding to SMEs in the aftermath of the COVID-19 crisis. SIFEM has committed USD 8m to CASEIF IV and has previously invested with LIM in CASEIF II and III. 

The Fund is aiming to provide primarily mezzanine structured growth capital to cash-generating, expansion-stage SMEs in Central America (El Salvador, Costa Rica, Honduras, Nicaragua, Panama, Guatemala) and the Dominican Republic and Colombia. The Fund expects to invest on average USD 6m in ten to twelve companies, primarily through mezzanine loans but also by taking controlling equity stakes in established businesses. 

The Fund is expected to have a high development impact by addressing the lack of growth capital for SMEs in target countries, which is vital for employment preservation and economic resilience. The Fund Manager has demonstrated over two decades its ability to adapt the private equity model to Central America to fill the SME financing gap in the region. 

The investment will contribute to the United Nations Sustainable Development Goals (SDGs) 8 (decent work), 9 (industry, innovation, infrastructure) and 17 (partnerships), but will also empower women and support gender equality (SDG 5).